H.R.1209 - End of GSE Conservatorship Preparation Act of 2025 (119th Congress)
Summary
H.R.1209, the "End of GSE Conservatorship Preparation Act of 2025," mandates the Secretary of the Treasury to submit proposals to Congress regarding the termination of the conservatorships of Fannie Mae and Freddie Mac. The bill requires the Secretary to report on the status of existing proposals related to ending these conservatorships. If these proposals are incomplete, the Secretary must finalize and submit them to the relevant committees within a specified timeframe.
Expected Effects
The bill aims to expedite the process of ending government control over Fannie Mae and Freddie Mac. This could lead to significant changes in the housing finance market. The immediate effect is to compel the Treasury to provide Congress with detailed plans for this transition.
Potential Benefits
- Increased transparency regarding the future of Fannie Mae and Freddie Mac.
- Potential for a more stable and competitive housing finance market.
- Reduced government involvement in the mortgage industry.
- Clarification of the financial obligations and risks associated with these entities.
- Opportunity for Congress to provide oversight and direction on housing finance policy.
Potential Disadvantages
- Potential for increased mortgage rates if the transition is not managed carefully.
- Risk of destabilizing the housing market during the transition period.
- Uncertainty regarding the role of the government in guaranteeing mortgages.
- Possible negative impact on affordable housing initiatives.
- The bill itself does not guarantee a positive outcome, only mandates reporting and proposal submission.
Constitutional Alignment
The bill appears to align with the Constitution, particularly Article I, Section 8, which grants Congress the power to regulate commerce and establish laws related to financial matters. The requirement for the Secretary of the Treasury to report to Congress also aligns with Congress's oversight responsibilities. The bill does not appear to infringe on any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).